Chainalysis Introduces Real-Time Alerts For Suspicious Crypto Transactions

News | August 23, 2019 By:

New York-based crypto-tracker Chainalysis has added a new real-time alert functionality to its Know Your Transaction (KYT) solution.

Founded in 2014, Chainalysis offers crypto investigation and compliance solutions to global law enforcement agencies, regulators, and businesses as they work together to fight illicit cryptocurrency activity. Its crypto transaction monitoring tool, Chainalysis KYT, is designed to automate the assessment of money laundering risk, thereby helping cryptocurrency businesses and financial institutions to meet regulatory requirements. The tool is being used by more than 110 crypto businesses and financial institutions in 36 countries.

In a press release, the company announced the launch of suspicious crypto transaction alerts in Chainalysis KYT to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources.

According to Chainalysis, alerts are generated whenever a transfer involves a risky counterparty and crosses a value threshold. The new functionality is available for all 15 cryptocurrencies supported by Chainalysis, including Bitcoin, Ether, Bitcoin Cash, Litecoin, and major stablecoins and ERC-20 tokens, such as Tether, Maker, and Dai.

“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices,” said John Dempsey, VP Product at Chainalysis. “Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”

The alert feature, which has been built directly into the user interface and API, will reportedly enable cryptocurrency businesses and financial institutions to keep track of, investigate, or take action on risky transfers. Alert levels include Severe, High, Medium, and Low, and are based on factors such as category, service, direct versus indirect exposure, direction of funds, and amount.

“As a New York Trust company we are required to monitor transactions on and off our platform,” said Michael Breu, Chief Compliance Officer of crypto exchange Gemini. “Tools like KYT alerts, which provide real time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies, help us meet our regulatory obligations.”